Edit post

Edit your reply below.

Post Body
Enter your post below.
[quote]QUOTE: Originally posted by jsalemi No, I'm saying that the cost of fuel is a factor, and can't be discounted because the price of oil is subsidized/regulated by the government in China. Labor costs are still the biggest part of shipping (and just about any business), but the cost of oil is more of an influence than some folks here have given it credit for, especially when it rises almost 50% in less than a month. Those container ships drink up a lot of it, so a 50% price increase can have a serious impact on shipping costs, and not just for hobby stuff. Heck, look at what it's doing to the airline industry. [/quote] Hold it right there. That container ship is moving a hell of alot of widgets. That ship does not use very much oil. In fact.. I bet when it arrives at that port and it becomes necessary to deliver 1000 boxes (Or whatever the total is on the ship) to points in the USA.. then you are talking some expense involved. If I order a engine at 400.00 equippted with sound and DCC like I did with the T-1 from PCM this year; alot of that money will disaapear into the markups and taxes before any of it makes it back to the orginal factory that made the durn thing along with 100,000 other copies of the model. Fuel is CHEAP as long you can write it off to taxes as an expense of doing business. Now we need to have a payroll for the crew, insurance policies for the ship, lading and required fees for ports. On to parts and fixings to maintain the ship and finally but not least.. the training and advancement of everyone from Captian all the way down to the Garbage man on that ship. Then you gotta think about the land connection between the factory who needs raw materials, skilled workers and costs to run the buildings etc... the trucking to the port, onto the ship, sail across the ocean off the ship then shipping to the LHS a year late and into hands of lucky people who pre-ordered the item on deadline while the rest scrambles to find the few copies that have not sold. And figure in all of those people involved in moving that product. Lastly but not least is the risk of loss in transit. Not all of the widgets are going to arrive 100% damage free. Ebay then sells the items at prices approaching twice retail (Go look at some walters kits that are retired and you will see where I am coming from) then come here and talk expense. When I hook that Reading T-1 ($400 MSRP) to the set of Walthers Heavyweights (8 at approx 35- each) I have already spent pretty much the total annual allotment for the hobby this year. Then I still need the track, Scenery (Something like 10 dollars every 7 shakes in the small bottles), electronics, lumber, labor, electricity to run everything.. etc etc etc.. that trainset gets expensive. But the hobby is not going to face ruin. Not as long as there are plenty of people willing to spend a thousand dollars or more for a nice trainset and additional money to keep the whole thing going. The hobby of trains is cheap compared to classic muscle cars that went from 500 dollars for a rusted Ford with a 351 block to about 5,000 bare minimum for one that actually turns over. Then when you finish restoring that old car to a beauty worthy of orginal factory showroom condition or even beyond it... you are going to be 20,000 in the hole. Did you enjoy the hobby? I hope so.
Tags (Optional)
Tags are keywords that get attached to your post. They are used to categorize your submission and make it easier to search for. To add tags to your post type a tag into the box below and click the "Add Tag" button.
Add Tag

Update Reply

Subscriber & Member Login

Login, or register today to interact in our online community, comment on articles, receive our newsletter, manage your account online and more!

Model Railroader Newsletter See all

Sign up for our FREE e-newsletter and get model railroad news in your inbox!

Subscriber & Member Login

Edit post

Post Body

Tags (Optional)

Subscriber & Member Login

Users Online

Search the Community